Companies: TIME ��

Corporate giants Procter & Gamble and Nestle have both struck deals or alliances with AIM minnow Timestrip, the developer of an inexpensive and versatile technology for accurately measuring elapsed time.

Its smart labels allow users of perishable food to tell how long food products have been opened or in use and can record time periods ranging from one hour up to one year. The technology is either implemented as an external label or embedded into products and packaging. Target markets include food retailing, medical devices, pharmaceuticals, the catering industry and even cosmetics, where joint chief executive Paul Freedman says the group’s new 12-month capable strip can help companies comply with EU legislation.

Calendar 2005 numbers failed to set the market alight, with losses of �1.3m struck on meagre sales of �100,000, but major endorsements are flying in. Nestle has just announced adoption of the Timestrip label for a range of bottled sauces and though the commercial scale is small, it is trailing other products. Furthermore, Procter & Gamble and appliance maker Hamilton Beach have selected Timestrip for use in an air purifier.

This year, Evolution Securities’ Tim Freeborn suggests a similar loss as sales build to �700,000, ahead of pre-tax profits of �200,000 from a top line �5.4m by 2007. Whether or not Timestrip can achieve such ‘hockey stick’ growth in its numbers, only time will tell, but the story is building momentum. The technology has heavyweight endorsement and financial resources ‘remain in robust health’. We still think the shares are high risk, but are worth holding.

Timestrip	AIM	�26.23m	8.38p	-0.25p
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